What Is the Major Difficulty with Using Discounted Cash Flow

question 10

Multiple Choice

What is the major difficulty with using discounted cash flow approaches to estimate a stock's intrinsic value?

• A)Prices in the stock market move from moment to moment.
• B)Small changes to the assumptions of k or g result in major changes in the estimated value.
• C)It is extremely unlikely that a stream of cash flows will continue to grow at the same rate.
• D)The relative valuation techniques are more accurate approaches.

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Definitions:

Planned Change

A deliberate effort to make systematic alterations or adjustments within an organization or its processes.

Planned Change

A deliberate effort to improve a situation or process within an organization, involving systematic steps such as assessment, design, implementation, and review.

Organizational Success

The achievement of the goals and objectives set by an organization, often measured by factors like profitability, market share, or growth.

Organizational Change Approach

Strategies and methods used by organizations to modify their structure, processes, or culture to achieve desired outcomes.